The board of directors of Stylecraft Ltd, a textile company, has recommended 410 per cent stock dividend for the year ended on June 30, 2018.
It was the highest stock dividend recommended so far by any listed company in the country's capital market, according to Dhaka Stock Exchange (DSE).
In 2017, Dutch-Bangla Bank disbursed 394.17 per cent stock dividend, the second highest stock dividend.
Despite the record stock dividend recommendation, Stylecraft's share price plunged 8.50 per cent or Tk 347.10 each to close at Tk 3,734.10 on Wednesday.
The share traded between Tk 3,661 and Tk 4,900 on the day. It was also the day's worst loser.
The company's share price was soaring in the recent times as the investors poured money in it, despite the company informed the DSE several times that there was no reason for the unusual price hike of their shares.
Against the backdrop of skyrocketing of its share price, the Bangladesh Securities and Exchange Commission (BSEC) sent the company to the spot market on August 22 this year.
The only additional news of Stylecraft was that it would increase the production approximately 23 per cent by adding six new lines.
Within six months, its share price surged more than 158 per cent or Tk 2,754 each. The company's share traded between Tk 1,301 and Tk 4,900 in the last one year.
The final approval of the dividend will come during the annual general meeting (AGM) scheduled to be held on December 17 at 3:00 pm at Spectra Convention Hall in Dhaka.
The record date is on November 04, 2018.
The company has also reported earnings per share (EPS) of Tk 36.16, net asset value (NAV) per share of Tk 317.93 and net operating cash flow per share (NOCFPS) of Tk 36.30 for the year ended on June 30, 2018 as against Tk 52.47, Tk 508.04 and Tk 89.44 respectively for the same period of the previous year.
The company, which was listed on the DSE in 1983, disbursed 10 per cent cash and 80 per cent stock dividend for the year ended on June 30, 2017.
The company's paid-up capital is Tk 9.90 million and authorised capital is Tk 500 million, while the total number of securities is 990,000.
The sponsor-directors own 50.39 per cent stake in the company while institutions own 7.19 per cent and the general public 42.42 per cent as on September 30, 2018, the DSE data shows.
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